Fondazione Eni Enrico Mattei

Economic Analysis of Crossbreeding Programmes in Sub-Saharan Africa: A Conceptual Framework and Kenyan Case Study

Conventional economic evaluations of crossbreeding programmes have overestimated their benefits by ignoring subsidies, the increased costs of management such as veterinary support services, and the higher levels of risk and socio-environmental costs associated with the loss of the indigenous genotypes. A conceptual evaluation framework is developed and applied to Kenyan dairy farmers. Results suggest that at the national level crossbreeding has had a positive impact on Kenyan societys welfare, although taking into account important social cost components substantially lowers the net benefits. Farm-level performance is, however, little improved under certain production systems by replacing the indigenous zebu with exotic breeds.

A Model of Optimal Labour and Soil Use with Shifting Cultivation

This paper analyses the relationship between rural poverty and soil degradation in the context of a shifting cultivating community. A deterministic optimal control model demonstrates how a representative households labour allocation affects the natural resource base on which its livelihood largely depends. The comparative static examination of relevant parameters and welfare effects of changes in the real wage rate are discussed. The theoretical results obtained are calibrated with data from the Yucatan, Mexico.

Valuing Local Public Goods with Advanced Stated Preference Models: Traffic Calming Schemes in Northern England

The paper reports the results of three stated preference surveys in urban-rural areas in Northern England. The objective is that of valuing the economic benefits from traffic calming schemes in two areas with different traffic problems from stated preference observations. Both choice-experiments and contingent valuation methods are employed using advanced modelling. Fixed and random coefficient utility models are estimated from responses of the choice-experiments, while double-bound spike models are used for contingent valuation. Welfare estimates from the different methods are compared. The role of accounting for repeated choices is found to be of relevance. Choice modelling is designed to disentangle the values of benefits from 5 major attributes of traffic calming schemes (noise abatement, speed control, community severance, aesthetic layout and tax burden).

On the Opportunity Cost of Nontradable Stock Options

Firms grant to their employees non-tradable stock options as an incentive device. Is the opportunity cost of issuing these options equal to the amount the company would receive if it sold the same options to outside investors? No, it is not, since the options granted to employees are non tradable, due to the incentive scheme to which they are related, and their value, i.e. the opportunity cost, may be lower or larger than the value of the corresponding tradable option.